operating costs, also known as operating expenses, refer to the ongoing expenses that a business incurs as part of its regular operations. These costs are not directly tied to the production of goods or services but are essential for running the day-to-day activities of the business. Operating costs include items such as rent, utilities, salaries and wages of non-production staff, insurance, office supplies, and other administrative expenses.
« Back to Glossary Indexoperating costs
« Back to Glossary Index